Canadian medicinal marijuana growing services company Aphria has planned a public offering valued at CAD 75.00 million (USD 55.63 million) in order to finance the firm’s expansion and general corporate purposes.

The business is issuing 11.54 million stocks, representing an 8.7 per cent stake in the group’s enlarged capital, at CAD 6.50 apiece.

Clarus Securities, acting as an underwriter to the offering, has been granted an overallotment option to acquire an additional 1.73 million shares for a 30-day period after closing.

The stocks will be placed through a short form prospectus to be filed in each of the provinces of Canada, with the exception of Quebec.

Completion is expected by 9th May 2017, subject to the approval of the Toronto Stock Exchange.

Earlier this year it was reported that Aphria, which is valued at around CAD 735.66 million, based on its close on the last trading day prior to the statement, could be a takeover target, according to analyst speculation.

The Ontario-headquartered firm claims to be one of Canada’s lowest cost producers of medical cannabis.

Aphria, which was formerly known as Black Sparrow Capital, was incorporated in 2013 and is a licensed producer under the Health Canada Regulations.